Mortgage Preapproval in Texas
Preapproval is where guessing stops. It converts a vague hope into a specific price range and a specific list of things to fix.
Prequalification vs. preapproval
A prequalification is a quick estimate based on what you tell a lender. A preapproval involves an application, a credit review and documentation of income and assets. Texas sellers take preapprovals seriously and prequalifications far less so.
What lenders review
- Credit report and score
- Income documentation and employment history
- Assets available for down payment, closing costs and reserves
- Existing monthly debt obligations and resulting DTI
Documents to have ready
- Photo ID
- Most recent pay stubs covering 30 days
- W-2s (typically two years) or tax returns if self-employed
- Two months of bank and asset statements
- Documentation for gift funds, child support, divorce decrees or bankruptcy discharge if applicable
How long preapproval takes
Once your documents are in, many preapprovals come back within one to three business days. The delay is almost always document gathering, not lender speed — which is why BOLD100 includes a document checklist activity.
Protect your file after preapproval
- Don't finance furniture, appliances or a car
- Don't open or close credit accounts
- Don't change jobs without talking to your loan officer first
- Don't move large sums between accounts without a paper trail
Preapproval is not final approval
A preapproval reflects the information reviewed at that time and remains subject to underwriting, appraisal, property eligibility, program guidelines and lender requirements.